Porter 5 Forces Analysis of Computer Industry

In: Business and Management

Submitted By adityadandsena
Words 654
Pages 3
The FICCI-KPMG Indian Media and Entertainment Industry Report 2013 published a record 16% growth over the previous The report also states that the games industry in India will grow at a 22% CAGR to cross Rs. 4000 crore ($776m) by 2017. That means the video games industry in India will almost triple itself in 5 years.year, to Rs.1500 crore (Rs. 15 billion / $277 million). Sweet numbers.
The console segment will overall grow at a rate of 19% CAGR, to reach Rs. 1900 crore ($351m) by 2017. The report is yet to take in other future factors such as the possible success/failure of PS4 and the upcoming Xbox.
On the other hand, the Internet & Mobile Association of India estimates that 50% of India’s mobile users have access to gaming content on their devices. These numbers are expected to rise amid increased penetration of smartphones and tablets.
Mobile gaming revenues in India typically have come through telecom operator partnerships, but this is expected to change by 2014, the report states, when sources such as app-stores and online marketplaces will dominate mobile revenues. This despite the fact that operators are now offering up to 70% revenue share to game publishers.

As expected, the big challenge for game publishers is monetisation, as a chunk of mobile game revenue in India comes from ad-funded free-to-play games. This also might be due to the fact of limited high-speed connectivity of smartphones and tablets alike, and limited access to credit cards. On a positive note, the report predicts this trend to change soon, with users slowly opening to newer revenue models.

The India mobile market has been growing rapidly and offering immense opportunities to players involved in the business. The market is performing on the back of rising penetration of smart phones and availability of high speed networks, like 3G and 4G services in the country. With a…...

Similar Documents

Porter 5 Forces and Pestel Analysis of Nestle Milo

...1) Aims: To carry out critical analysis, evaluation and discussion on the strategies for an organisation to remain its competitiveness in its industry. 2) Students will work in group of 4 or 5 students a group. Therefore, this is a group effort. Teamwork and coordination are highly expected. Reference books for sources of information are necessary. 3) Select a public listed company or organisation from Bursa Malaysia. Identify one (1) or two (2) products (maximum) to be discussed in this assignment. 4) Prior to detailed write-up, students are required to submit proposal on their choices of the company and product(s) concerned to seek approval from the tutor concerned. This is to identify its suitability and to avoid duplicating. a) The proposal shall have brief description on the following to be assessed: i) The industry and its product(s) to be studied, ii) Its supply chain, competitors, etc., iii) List of potential strategies involved, etc. b) Hence, as a proposal, it shall NOT have more than two (2) pages. The format should be in Times New Roman font and of size 12, line spacing of 1.5 with the normal page margin on A4 paper. c) Proposal shall be submitted, latest on Week 4, for approval. Students are advised to submit earlier to avoid rejection due to some reasons. For instance, selection is on first come first approve basis. i) If the proposal is not approved as mentioned above, the group concerned is required to submit a fresh proposal. Decision and......

Words: 749 - Pages: 3

A Water Concessioners Porters 5 Forces Analysis

...A WATER UTILITY CONCESSIONER PORTERS FIVE FORCES ANALYSIS 1. Rivalry among existing competitors- Low to Non-Existent. Since it is under concession agreement, there is no other water utility company that can engage any business similar to A Water Utility concessioner, unless granted by the government under special agreement and with full knowledge and approval of A Water Utility concessioner. 2. Threat of new entrants- Low to Non-Existent. Companies that may want to apply for the concession must first comply with government requirements and also must have a substantial amount of capital investment (around 6 Billion Dollars starting capital), not to mention the technical expertise to run and maintain a water utility company. 3. Bargaining Power of Supplier- Medium. Although the primary raw material of A Water Utility concessioner is water which is basically free, the materials used for distribution line maintenance and expansion are quite few. Though this is the case, A Water Utility concessioner still has a slight control on the pricing of these materials unless the raw materials for these items like resin, steel, alum coagulating chemical used in treating raw water), etc. increases. 4. Bargaining Power of Customer- Medium. This is due to the regulated tariff by the government under the MWSS Regulatory office which deals directly with A Water Utility concessioner.\ 5. Threat of Substitute- Low. The small water refilling stations also get......

Words: 353 - Pages: 2

Powerpoint Presentation on Biolite; Porters 5 Forces Analysis

...line with local needs 1st World Outdoor Recreational Equipment Market People may buy-in to the story / social benefit as well as the product. BUT – business driven by personal mission, passion, interest in innovation, & a ‘virtuous cycle’ of social & economic benefits NEW FACTOR: Emergence of Force of BELIEF – potentially interesting dynamic to see how this develops in future New Entry Threats WTP-C=SSP Buyers Bargaining Power Suppliers Bargaining Power Industry Rivalry *Relatively new and growing market Suppliers options high, but some possibility of support from powerful organisations? Business collaborations partly out of a shared value system? (Influence of Belief dynamic?) Substitutes Threat Innovative synergy of electricity generation & cooking functionality; limited patent protection. Competitive advantage / differentiation factor; thermal energy converter to electricity Patents, innovation, DUAL MARKET with strong & wellplanned rollout strategy in both. Estimate pricing range USD $20 - $100; other options? OPTIONAL DISCUSSION ISSUES: Does 5-Forces model apply equally to social enterprise? Modifications to the model necessary? How to apply analysis to success of social business? Implications for the future? Any ethical considerations? ...

Words: 477 - Pages: 2

Apple Porters 5 Forces

...Coursework 1 Hand in Date and Time: 13/11/13 at 3pm on StudyNet and in Coursework Hand-In point Weighting: 30% Title: Marketing Audit Format: Report Type: Group (approx 4-5 members) Select one of the following organisations and familiarise yourself with the relevant organisation website * Apple Inc www.apple.com CONSUMER ELECTRONICS * Tiffany’s & Co www.tiffanys.co.uk LUXURY RETAIL 1. Write a brief overview of the organization Access the relevant industry Mintel /Keynote report and other relevant research from information databases 2. Identify and illustrate the SBU’s (Strategic Business Units) for the organization External Environment 3. Apply PESTEL to the chosen industry. Illustrate and provide detailed explanations 4. Apply Porters 5 Forces to the relevant industry /organization /sector. Illustrate and provide detailed explanations 5. Illustrate in a grid format: Opportunities and Threats Internal Environment 6. Apply McKinsey’s 7S matrix to the organization /sector 7. Apply Marketing mix to the organisation /sector 8. Illustrate in a grid format: Strengths and Weaknesses SWOT Analysis 9. Illustrate in a grid format: corporate SWOT Analysis 10. Illustrate in a grid format: SBU SWOT Analysis (For Apple choose ipad and for Tiffany’s choose Jewellery Strategic Positioning 11. Identify competitors for Apple or Tiffany’s and using a perceptual map with appropriate axes demonstrate a gap in the......

Words: 1792 - Pages: 8

Health Industry 5 Forces Analysis

...The Health Club Industry This case provides an opportunity to practice analyzing the industry environment and how it might influence the strategic issues facing a firm. In essence, any industry analysis requires us to think about how broadly we should define the scope of the industry. Please be sure to identify the boundary of the industry. In preparing your case for class discussion, please ensure you have read chapter two from Dess Lumpkin and Eisner, 2012, which is available on Blackboard. Further detail is available in Porter, M.E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86 (1), 78-93, which can be found via the library catalogue. Please focus your notes on trying to apply each of the five forces mentioned in this article to the case study. Look at what contributes to each of the five forces and try to identify or interpret data and evidence from the case to make a judgment about each of these. Avoid merely describing the case by ensuring you use the model as a framework for analysis; then for each component of the model, evaluate whether that ‘force’ would present difficulty for a firm competing in the industry. Finally, you should consider what the framework as a whole tells us about the industry and implications for firms. You may use the worksheet below to help you structure your notes if you wish. Please note: in real life, as in the case, we often don’t have full information so have to make ‘best assessments’ based on......

Words: 1002 - Pages: 5

Porters 5 Force Analysis

...Porter’s 5 Forces Analysis = Suppliers, Customers, New Entrants, Substitute Products, Competitors What is Porter’s 5 Forces Analysis? Porter’s 5 forces analysis represents the competitive environment of the firm. It is a strategic foresight to avoid putting the competitive edge at risk and ensure the profitability of products on a long term. For the company this vision is quite important because the firm is able to direct its innovations in terms of choice of strategies and investments. The profitability of businesses within the industrial structure depends on the following forces: Competitive rivalry within the industry; Threats of new entrants; Threats of substitutes products; Bargaining power of customers; Bargaining power of suppliers. Golden Rules 6th force = Often the model is adjusted with a 6th force, the public authorities. This is important because the law and the norms can influence each of Porter’s 5 forces. Key factors for success = The key success factors of the environment have to be identified. To have a competitive advantage some strategic elements should be controlled. Threats of new entrants Public Authorities Bargaining power of suppliers Competitive rivalry within the industry Bargaining power of customers Threats of substitute products © Copyright 2008 LUXINNOVATION G.I.E., The National Agency for Innovation and Research in Luxembourg 1/2 Porter’s 5 Forces Analysis = Suppliers, Customers, New Entrants, Substitute......

Words: 594 - Pages: 3

Porters 5 Force Analysis of Apple Inc

...Apple Inc. specialises in development, design and marketing of computers, portable-digital music players and other didgital devices including iPad’s and mobile devices (IPhone). Apple Inc. are also involved in selling multiple supporting software, digital content, third party applications, networking software and services. Apple Inc. predominantly operate from their U.S headquarters in Cupertino, California and involves 72,800 employees (Forbes, 2013). Revenue for APPL in 2013 has risen from $155.97bn in 2012 to $170.87bn in 2013 (Market watch, 2013) which is a 9.6% increase. The objective of the Porter’s 5 forces model is to identify and elucidate the current levels of competition existing with a market, by examining what the 5 forces involve. ‘The model therefore provides a detailed and nuanced picture of the industry and to make an in-depth analysis with an idea of what factors one can try to influence in order to create optimal conditions for one’s business and the industry” (P.K. Faarup, P113, 2010). Threat of new entrants High levels of competition currently being practiced in the PC and mobile industry make it difficult for potential competitors to enter the market. Unlike many companies Apple inc. has secured brand loyalty from customers by focusing on product innovation and, research and development. Another way apple has secured its brand loyalty is by creating an emotional connection with consumers by embracing the internet and social media to voice what......

Words: 1770 - Pages: 8

Video Game Industry- 5 Forces Analysis

...2/4/14 Five Forces Analysis of the Video Game Industry As in every industry, there are five competitive forces that determine the intensity of competition between the different players. These competitive forces are; the threat of entry of a new company in the industry, the threat of substitution by another product, the bargaining power of the buyers, the bargaining power of the suppliers, and rivalry among currently existing competitors. These competitive forces are easily seen in the video game industry, as there is already immense competition in the industry due to the similarities between the few major companies at play. Sony, Nintendo, and Microsoft are the three large players in the present day video game industry. Sony Computer Entertainment Inc. has been a dominant company in the industry for over a decade with the PlayStation 1 and PlayStation 2 platforms; however, it is struggling to stay at the helm of the industry due to the presence of these competitive forces. The threat of entry of a new company in the video game industry is a relatively weak competitive force for Sony. The video game industry is already dominated by three major players (Sony, Nintendo, and Microsoft), thus the possibility of a new entrant in the industry is very low. Nintendo was established well before Sony as a major player, and Microsoft came into the industry in 2001 with the original Xbox. When Sony came in with the PlayStation 1, they completely took over the industry and......

Words: 1451 - Pages: 6

Porter 5 Forces Concept

...Porter's Five Forces A MODEL FOR INDUSTRY ANALYSIS The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. Diagram of Porter's 5 Forces SUPPLIER POWER Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to total purchases in industry THREAT OF NEW ENTRANTS Barriers to Entry Absolute cost advantages Proprietary learning curve Access to inputs Government policy Economies of scale Capital requirements Brand identity Switching costs Access to distribution Expected retaliation Proprietary products RIVALRY THREAT OF SUBSTITUTES -Switching costs -Buyer inclination to substitute -Price-performance trade-off of substitutes BUYER POWER Bargaining leverage Buyer volume Buyer information Brand identity Price sensitivity Threat of backward......

Words: 3333 - Pages: 14

Porter 5 Forces

...Awareness of the five forces can help a company understand the structure of its industry and stake out a position that is more profitable and less vulnerable to attack. 78 Harvard Business Review | January 2008 | hbr.org STRATEGY STRATEGY by Michael E. Porter Peter Crowther SHAPE THE FIVE COMPETITIVE FORCES THAT Editor’s Note: In 1979, Harvard Business Review published “How Competitive Forces Shape Strategy” by a young economist and associate professor, Michael E. Porter. It was his first HBR article, and it started a revolution in the strategy field. In subsequent decades, Porter has brought his signature economic rigor to the study of competitive strategy for corporations, regions, nations, and, more recently, health care and philanthropy. “Porter’s five forces” have shaped a generation of academic research and business practice. With prodding and assistance from Harvard Business School Professor Jan Rivkin and longtime colleague Joan Magretta, Porter here reaffirms, updates, and extends the classic work. He also addresses common misunderstandings, provides practical guidance for users of the framework, and offers a deeper view of its implications for strategy today. IN ESSENCE, the job of the strategist is to understand and cope with competition. Often, however, managers define competition too narrowly, as if it occurred only among today’s direct competitors. Yet competition for profits goes beyond established industry rivals to include four other......

Words: 10999 - Pages: 44

Porter 5 Forces on Healthcare Industry

...Macro-environment PEST analysis is used to provide a summary on the key forces which is likely to affect healthcare industry at the level of the macro-environment. Malaysia has been seen as one of the best destination for medical tourism for its modern private healthcare facilities as well as highly efficient medical professionals (Arshad, Velasamy and Wong, 2014). According to Matta president Hamzah Rahmat, the weakening Ringgit Malaysia is perceived to have benefited the medical tourism industry however the unstable political situation such as rallies, protest and violence had kept the tourist away (FMT, 2015). Despite the unfavourable political situation, healthcare industry is still expected to grow at a double-digit rate (The Edge, 2015). Based on HLIB research on healthcare sector, one the catalysts for the sector is that the community has higher educational level and awareness toward personal health which in turn increase the demand of healthcare services (The Edge, 2015). Besides, technology advancements are also transforming the healthcare industry vastly for the past decades. Technology has improved information gathering, research, treatments and communications between doctors and patients (MOH, 2015). As such, it give medical providers a fresh, effective and efficient way to practice medicine. Threat of New Entrance It is not easy to enter into the private healthcare industry in Malaysia as the industry is highly regulated by the Private Healthcare......

Words: 1087 - Pages: 5

5 Porter Force in the Beer Industry

...Five Force Analysis: Supplier Power The beer market’s prime suppliers are farmers. Most breweries buy their supplies on the relevant countries’ futures exchange. Hence the branch has an opportunity to diversify its risk by trading futures contracts as well as hedging other risks. Various farmers supply the hops, barley, corn and rice used to produce beer. In 2008, there were 2,053 companies that purchased these ingredients. The overall beer industry sold nearly 206 million barrels of beer in 2009. For major brewers, the volume of ingredients purchased, the large number of farmers available to purchase the ingredients from, low switching costs on the part of the brewer, and inability of the farmers to forward integrate, supplier power in considered low in regard to the major brewers. Craft brewers who purchase fewer ingredients and sometimes more specialized ingredients may cause supplier power for this segment of the industry to be somewhat higher; yet, overall, suppliers have put limited pressure on price and supplier power is LOW. There are only a few large suppliers of aluminium cans, plastic and glass bottles, which increase the supplier’s bargaining power. However, taken into consideration largest brewery companies existing we can assume that the suppliers of those goods have a incentive in taking care those as a customer and will therefore provide them with the best possible price, in order to keep them as a customer. Competitive pressure from supplier bargaining......

Words: 4049 - Pages: 17

Porters 5 Forces

...Supermarket Industry Porters 5 Force’s Porter (1980) illustrates in this analytical tool 5 variables that determine the attractiveness of an industry for organisations in terms of profitability in their immediate environment. Using the forces in this model we can analyse how attractive the UK Supermarket industry is to enter, the 5 forces are as follows. The threat of potential new entrants Barriers to entry in the UK supermarket industry relies on the entrants capability of matching capital requirements of existing firms, the UK supermarket industry is dominated by firms known as Tesco, Asda, Sainsbury’s and Morrison’s (Big 4) owing up to 69% of market share in the UK. Looking at the experience curve (1960: Boston Consultancy Group) A new entrant would have to achieve the economies of scale needed to achieve cost parity with the big 4 and compete on cost advantage. In the supermarket industry achieving economies of scale is not on production but other factors such as efficiency, pricing, range of goods and value of products. Tesco for example have very low cost margins in comparison to the scale of their operations and distribution channels but they are able to achieve high sales because the convenience, range of products and different services they offer. Product differentiation is another barrier to entry, a new entrant would need to achieve and individual level of differentiation and attain an identity through promotions and costly advertising, total......

Words: 1807 - Pages: 8

Banking Industry 5 Force Analysis

...threat to the banking industry, but one major factor affecting the power of buyers is relatively high switching costs. If a person has a mortgage, car loan, credit card, checking account and mutual funds with one particular bank, it can be extremely tough for that person to switch to another bank. In an attempt to lure in customers, banks try to lower the price of switching, but many people would still rather stick with their current bank. On the other hand, large corporate clients have banks wrapped around their little fingers. Financial institutions - by offering better exchange rates, more services, and exposure to foreign capital markets - work extremely hard to get high-margin corporate clients. 4. Availability of Substitutes. As you can probably imagine, there are plenty of substitutes in the banking industry. Banks offer a suite of services over and above taking deposits and lending money, but whether it is insurance, mutual funds or fixed income securities, chances are there is a non-banking financial services company that can offer similar services. On the lending side of the business, banks are seeing competition rise from unconventional companies. Sony (NYSE: SNE), General Motors (NYSE:GM) and Microsoft (Nasdaq:MSFT) all offer preferred financing to customers who buy big ticket items. If car companies are offering 0% financing, why would anyone want to get a car loan from the bank and pay 5-10% interest? 5. Competitive Rivalry. The banking industry is highly......

Words: 531 - Pages: 3

Banking Industry 5 Force Analysis

...بانکی که در ایران تاسیس شد « بانک جدید شرق » بود که مرکزش در لندن و حوزه عملیاتیش مناطق جنوبی آسیا بود این بانک بدون تحصیل هیچگونه امتیازی در سال 1266 شمسی (1888 میلادی ) در شمال شرقی میدان توپخانه در محل بانک بازرگانی ( تجارت فعلی ) شروع به فعالیت کرد و برای جلب مشتریان در شروع فعالیت به حسابجاری معادل 2/5% و به حساب سپرده های ثابت به مدت 6ماه 4% و یکسال 6% سود می داد.بانک با این اقدام خود در بازار پولی 12% از نرخ بهره را پایین آورد و برای اولین بار اقدام به انتشار نوعی پول کاغذی به صورت حواله عهده خرانه بانک برای مبالغ بیش از 5 قران و قابل پرداخت در وجه حامل نمود و در سال 1267 در مقابل دریافت 20000 لیره انگلیسی کلیه شعب و اثاثیه بانک را به بانک شاهی واگذار نمود . اهداف و وظایف بانک در آغاز فعالیت بانکها چهار وظیفه اساسی داشتند : 1- تشکیل انواع پول ها متعلق به کشور های مختلف جهان در سیستم فلزی ( طلا و نقره ) 2-تعیین وزن و عیار هر پول 3-تعیین نسبت برابری پول ها برای مبادله 4-نگهداری پول های فلزی اشخاص ( طلا و نقره ) در محل های امن وظائف و خدمات بانک های تجاری ( خصوصی یا دولتی ) باستثنا بانکهای تخصصی بصورت ساده بقرار زیر است : 1- قبول سپرده ( دیداری _ مدت دار ) یا تجهیز منابع پولی 2- ایجاد تسهیلات ( وام _ اعتبار ) 3- خرید و فروش فلزات قیمیتی 4- اجاره صندوق امانات 5- نقل و انتقال پول در داخل یا خارج از کشور 6- نگاهداری و انجام امور مربوط به اوراق و اسناد بهادار 7- انجام عملیات بورس 8- صدور ضمانت نامه بانکی 9- تنزیل اوراق تجارتی 10- انجام معاملات ارزی( خرید و فروش ) 11- خرید و فروش سهام و اوراق قرضه و اسناد خزانه ( عملیات برس) 12- گشایش اعتبارات......

Words: 902 - Pages: 4